AUD/USD: will potentially struggle to maintain 0.79 handle after N.Korea news

Currently, AUD/USD is trading at 0.7914, down -0.62% on the day, having posted a daily high at 0.7971 and low at 0.7910.

AUD/USD took a hit on the N.Korean and Japanese news as tensions in the Pacific heat up due to North Korea's missile launch that Japanese chief cabinet secretary Suga said was an unprecedented and a grave threat.

North Korea's missile fell into waters off Japan's Hokkaido - NHK

"We will make utmost efforts to firmly protect the lives of the people," Abe expressing his concerns to reporters for the matter and for the people of Japan as he entered his office for emergency meetings on the missile firing.

AUD/USD is now testing the downside and close to a break below the 0.79 handle having dropped approximately 70 pips on the news. Risk-off is the theme for the day and the higher beta currencies are going to struggle. 

AUD/USD levels

AUD/USD has dropped with an eye in below the 0.79 handle for the session ahead should risk off take a hold throughout Asian markets and European markets. "Below the 0.7862/08 current August low and support line lies good support at 0.7790/41. It is where the February and March highs meet the 55-day moving average," explained analysts at Commerzbank.